All about the community of model railroading and rail enthusiasm
March 13, 2026
From staff and news reports
Praesidian Capital, a private equity firm focused on investing in lower middle market companies across multiple industries, announced this week that its portfolio company Round 2 Holdings acquired Lionel LLC, one of the most recognized brands in the global hobby industry.
The combined organization will operate under the Lionel Brands Group name and join Lionel’s iconic model train heritage with Round 2’s portfolio of hobby and collectibles brands. The platform will emphasize product innovation, licensing partnerships and expanding distribution across hobby, specialty retail and collector channels.
Lionel has been synonymous with model railroading for more than a century and remains one of the most recognized brands in the American toy and hobby history. It has licensing agreements with several well-known brands − Disney, Coca-Cola, Polar Express, Star Wars, Harry Potter, Batman and others – to create models and other products. Lionel Racing is the official die-cast toy producer of NASCAR.
The company celebrated its 125th anniversary last year.
Round 2 is a leading designer and marketer of model kits, die-cast vehicles, slot cars and farm toys serving hobbyists and collectors.
A soft announcement of the new company was made at the New York Toy Fair in February. A Lionel Brands poster featuring 14 brands, including Lionel’s, was captured on Facebook.
Richard Barry, who has presided over Round 2 Holdings, was appointed CEO of the Lionel Brands Group. He previously was the CEO of Tru Kids, parent of the Global Toys “R” Us and Babies “R” Us brands.
“Lionel is a brand that has inspired generations of hobbyists and collectors,” he said. “Bringing Lionel together with Round 2 creates a unique platform within the hobby industry that combines heritage brands, passionate enthusiast communities and deep product development capabilities. We look forward to continuing Lionel’s tradition of innovation while expanding opportunities across Lionel Brands Group.”
The acquisition complements Round 2’s stable of companies. Among the brands formerly under Round 2 that are being rolled into the Lionel Brands Group are MPC Model Products, AMT, Mini Metals, Johnny Lightning and Big Country Toys.
Praesidian bought Round 2 in 2021.
“Lionel and Round 2 each have deep connections with hobbyists and collectors around the world,” Praesidian Capital partner Kevin Burke said. “Bringing these businesses together under Lionel Brands Group creates an exciting opportunity to build on that heritage while continuing to invest in product innovation and the enthusiast communities that make this industry so unique.”
Joshua Lionel Cowan and Harry C. Grant founded the Lionel Corp. in New York City in 1900; it has had multiple owners – among the most notable rock star Neil Young – over its 126 years in business.
According to Trains.com, General Mills purchased Lionel in 1969 after the company suffered hard times. Real estate developer Richard Kughn bought Lionel in 1986 after General Mills divested its toy division.
Kughn teamed with Young to create Liontech, then sold to the investment firm Young and Wellspring Associates, LLC. Since 2014, Lionel’s corporate headquarters has been in Concord, NC.
Praesidian invests across a range of sectors, including consumer products, specialty manufacturing and business services. The firm has long maintained an affinity for enthusiast-driven consumer brands and businesses with strong heritage and loyal customer communities.
